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Software encoding

What is software encoding?

At its core, software encoding is the process of compressing large data files into a format that can be easily transmitted over a network. Encoding is most often used for media files; before they’re sent over the internet, raw audio and video files must be encoded because of their sheer size.

As opposed to hardware encoding, which relies on a physical encoding device to compress video and audio, software encoding goes through the compression process virtually using a program. This is the most cost-efficient and convenient way to encode media so it can be sent or streamed online. 

Why is software encoding important?

Without the encoding process, videos couldn’t be posted online and live streams wouldn’t work. Most content creators need software encoding to process and upload their videos, and all live streamers rely on encoding software or hardware to deliver their broadcasts. For this reason, software encoding has become a vital part of streamed online entertainment.

Furthermore, most online platforms rely on the encoding process to handle the media being sent and streamed on their site. Posting a video on X or Facebook makes use of encoding while uploading it to the site, where it is decoded and displayed in its original form. Software encoding uses the same procedure but client-side, so that creators’ live content can reach their online audience properly.

How software encoding works

Software encoders compress raw video data into a smaller format that’s easier to send. By using complex algorithms, encoding software reduces a file’s size by finding and removing unnecessary data within it. This slightly reduces the quality of video files, but in a way that’s practically invisible to the human eye. When the file is sent after compression, the system or platform that receives it decodes the file, which returns the video to its original state.

Essentially, software encoders convert video and audio signals from their original formats (like a raw camera feed) into standardized digital formats that streaming sites recognize and decode into displayable media. This is what delivers a continuous stream to a live platform or allows a video to be played on YouTube, for example.

Software encoding: Pros and cons

Software encoding is an effective budget option for small content creators or anyone looking to try live streaming. Many people use software encoders for their live content because they don’t need any additional hardware to host a stream effectively. 

Encoding software relies solely on your computer’s resources and hardware, which can be good and bad. It’s more straightforward and makes buying a physical encoder unnecessary, but a software encoder is only as good as the computer it’s running on.

Software encoders also tend to be highly customizable. You can use encoding software to switch between video feeds while live streaming, change the compression bitrate and encoding standard, and add effects to your broadcast. This is useful for keeping a stream up when there’s a sudden dip in network conditions.

The main drawback with encoding software is its latency and slower speed than a hardware encoder. When handling multiple streaming tasks at once, encoding software can function less reliably than a separate physical encoder, which will handle your streaming needs more easily at a steeper price.

  • OBS Studio is a popular open-source software among streamers with many online resources and guides on how to use it effectively.
  • XSplit is a good encoding software for professional streamers, who use it for recording video games, broadcasting presentations, and hosting live events.
  • vMix is a quality software encoder for Windows that offers both free and paid capabilities for live streaming. You can upgrade the version you have for higher numbers of video inputs and more.
  • Restream Studio is an essential free streaming software that can be operated in a browser with ease. You don’t have to download or install anything to give it a try for your live content needs.